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How Much Should You Be Investing in Marketing as a Small Business?

How Much Should You Be Investing in Marketing as a Small Business?

Marketing might feel like a big expense, but it’s one of the smartest moves you can make as a small business owner. The real question isn’t whether to invest in marketing—it’s how much. Marketing is the key to unlocking your business’s full potential. Let’s dive into how you can create a marketing budget that works for you and sets your business up for success.

And let’s just say this now – marketing is going to require an investment of both time and money. By definition, marketing is promoting your services or product to your clients. If you are promoting, how are you making any money!?

Here are a few things we think you should know about investing in marketing for your business:

1. Understanding Industry Standards

Figuring out how much to spend on marketing can be tricky, but there are some helpful guidelines to keep in mind. For startups and new businesses, it’s a good idea to set aside 11–20% of your projected revenue. This higher percentage helps build brand awareness, establish credibility, and bring in new customers. If you’re a more established business, 5–10% of your revenue is typically enough to maintain and grow your customer base.

Here’s how that might look, depending on your revenue:

  • Revenue under $100,000: Marketing investment ranges from $5,000 to $20,000 annually, depending on your business goals and growth stage.
  • Revenue of $100,000: Marketing budgets might range from $5,000 to $20,000 for startups or $5,000 to $10,000 for established businesses.
  • Revenue of $250,000: Allocate $12,500 to $50,000 based on your marketing needs.
  • Revenue of $500,000: Budgets might range from $25,000 to $100,000, focusing on strategic scaling and maintaining customer retention.
  • Revenue of $1 million: Businesses at this level often invest $50,000 to $200,000 annually to maintain competitive advantages and expand their market share.

Want an example? Think about Coca-Cola’s $10 million Super Bowl ad in 2023. That wasn’t just a commercial—it was a cultural moment that reinforced their brand loyalty and kept them top of mind for millions of people. While your small business may not be spending millions, the same principle applies: investing in intentional marketing can make a huge impact on your visibility and growth.

2. Factors That Impact Your Marketing Budget

Your business is unique, and your marketing budget should reflect that. Here are a few things to think about:

  • Who’s Your Audience? If you’re targeting a large or competitive market, you’ll need a bigger budget.
  • What Are Your Goals? Are you focused on growth, retaining customers, or launching something new? Your goals shape your spending. If you have a very niched market, you may not be looking for volume, you want be more concerned about whether your efforts are getting to your desired market.
  • Where Are You in Your Journey? New businesses often spend more upfront to get noticed, while established businesses can focus on fine-tuning their strategies.

3. Why Marketing Is Essential for Small Businesses

Marketing isn’t just an expense—it’s a critical investment in your business’s growth. Strategic marketing builds brand awareness, drives new leads, and fosters customer retention. By consistently communicating with your audience, you create loyalty and trust, which are essential for long-term growth. Investing in marketing now ensures your business is prepared to scale and adapt in the future.

Here’s why it’s so important:

  • It Builds Awareness: Marketing gets your name out there so people know you exist.
  • It Attracts Customers: Strategic campaigns bring new leads and sales.
  • It Keeps People Coming Back: Consistent engagement builds trust and loyalty.
  • It Fuels Growth: Marketing ensures your business stays competitive and ready for what’s next.

But what if you skip marketing? The risks are real. Without it, you could:

  • Lose visibility and miss out on potential customers.
  • Fall behind competitors who are staying in front of your audience.
  • Struggle to keep current customers engaged.
  • See your business stagnate instead of grow.

For more insights on why marketing matters, check out this article by Forbes or HubSpot’s guide to marketing ROI.

4. Leveraging Resources to Plan Your Budget

Planning your marketing budget doesn’t have to be overwhelming. These tools and resources can help:

5. The Best Marketing Tools for Small Businesses

Using the right tools can make your marketing budget go further. Here are some favorites:

  • Email Marketing: Build relationships with platforms like Mailchimp.
  • Social Media Management: Stay consistent with tools like Later or Buffer.
  • CRM Software: Track leads and interactions with HubSpot CRM or Honeybook.
  • Graphic Design: If you aren’t ready to hire us yet, you can use Canva, even if you’re not a designer.
  • SEO and Analytics: Use Google Analytics to optimize your website and understand your audience.
  • Content Management: Manage your website with WordPress or Squarespace.
  • Advertising Platforms: Run effective campaigns with Google Ads or Facebook Ads Manager.

These tools are affordable, scalable, and perfect for small businesses looking to level up their marketing.

Conclusion

At TK Consulting & Design™, we’re here to make a marketing strategy that delivers your brand directly to your ideal clients less. We know every small business is different, which is why we craft strategies that fit your needs and your budget. Just like Coca-Cola’s Super Bowl investment proved, the right marketing can transform your business by building relationships and driving growth.

Ready to take the next step? Let’s chat! Book a free discovery call with us, and we’ll help you design a plan that works for you. Schedule Your Call Now.

Check out how we made an impact on JetAire’s marketing through our case study.